Verizon Communications’ robust 5G rollout for this year remains on track.
“We are on course — we will have those 30 cities up by the end of the year,” Verizon Communications executive vice president and group CEO, Verizon Business Tami Erwin said on Yahoo Finance’s “The First Trade.” “We are really excited about it because as we begin to get some momentum behind this and as we begin to get more hardware in the market, we can do this faster and faster.”
The telecom and media giant took its latest step to hit its often cited 30-city 5G goal for 2019 on Thursday.
Verizon launched 5G availability in St. Paul, Minn., joining previous launches in Denver, Chicago, Minneapolis and Providence. The company also debuted its fifth 5G-enabled device with the launch of the Inseego MiFi hotspot, which could connect up to 15 users to ultra high-speed connectivity. (It’s not cheap: one of these devices sell for $649.99, not including the monthly data cost.)
The new 5G services are expected to offer quicker download times for data hungry consumers. For Verizon, 5G will give it a platform to charge more per customer for the upgraded service.
Verizon Communications (VZ) chairman and CEO Hans Vestberg has said it may be up to two years before the benefits of 5G positively impact’s Verizon’s financials. But Wall Street is bullish on what that impact could do to Verizon’s bottom line.
Says Deutsche Bank telecom analyst Matthew Nikmam: “We believe the Verizon 2.0 strategy is likely to yield more cost efficiencies initially, with potential revenue benefits from the new, customer-centric focus on consumer/business in a more converged, 5G world.”
Verizon Communications is the parent company of Yahoo Finance.